> For the complete documentation index, see [llms.txt](https://cll-devrel.gitbook.io/bootcamp-2024/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://cll-devrel.gitbook.io/bootcamp-2024/6.-nfts-and-chainlink-automation/nft-basics.md).

# NFT Basics

In this section we will understand the fundamentals of NFTs.

### What Are NFTs

NFTs (also known as Non-Fungible Tokens) are unique cryptographic assets. Unlike Fungible Tokens, NFTs are one-of-a-kind. This means they can’t be replicated or divided into smaller units.

These characteristics mean NFTs can be used to represent various digital assets such as:

* Identities/Memberships
* Tickets
* Real Estate
* Posts
* Badges
* Trading Cards

### Difference Between Fungible & Non-Fungible Tokens

**Fungible Tokens** characteristics:

* **Interchangeability**: Each token is identical to another in type and value, similar to fiat currencies (dollar, euro etc.) where each unit is worth the same.
* **Divisibility**: Fungible tokens can be divided into smaller units, allowing for transactions of varying sizes and values.

**Non-Fungible Tokens** characteristics:

* **Uniqueness**: Each NFT has distinct properties and cannot be exchanged 1-1 with another NFT.
* **Indivisibility**: NFTs can’t be divided into smaller units. They are bought, sold, and owned whole.

NFTS cannot be copied, substituted, or subdivided ([source](https://en.wikipedia.org/wiki/Non-fungible_token)). While fungible tokens are often used as a medium of exchange or value storage (similar to money), NFTs are used to prove ownership or authenticity of a unique item or piece of content.

#### NFT Metadata

Metadata provides extra information about an NFT stored in a [JSON](https://en.wikipedia.org/wiki/JSON) file. This metadata can be stored both on-chain & off-chain and it is used to provide extra relevant data about the NFT or enhance the asset it is representing. Metadata can include the following:

* Images
* Name
* Attributes
* Description
* External URLs

NFT Marketplaces such as [Opensea](https://opensea.io/) often have their own [Metadata Standard](https://docs.opensea.io/docs/metadata-standards), which specifies exactly how the Metadata JSON should be formatted.

<figure><img src="https://62720068-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FNQrWPKDHvXg0HQjwzHbY%2Fuploads%2FDXj8GHfEHauJ8QshkeZ7%2FScreenshot%202024-04-25%20at%2015.43.53.png?alt=media&amp;token=2c6dfa76-923e-4b67-8842-dc245dcb03d4" alt=""><figcaption><p>Opensea NFT, ERC721 Smart Contract, JSON Metadata</p></figcaption></figure>

NFT Metadata is commonly stored off-chain using decentralised file storage such as IPFS (InterPlanetary File System). Users can run their own IPFS node and store their images & metadata for their NFTs.

However, to make it more accessible for everyone here are a few alternatives that can make it easier to store metadata without running an IPFS node yourself:

* [Pinata](https://www.pinata.cloud/)
* [Infura](https://www.infura.io/)
* [Quicknode](https://www.quicknode.com/ipfs)
* [NFT.storage](https://nft.storage/)
* [Web3.storage](https://web3.storage/)
* [Thirdweb storage](https://thirdweb.com/storage)